12.03.10 News: VDMA Construction Equipment and Building Material Machinery: Slump in 2009 – Rally in 2010
For the German construction equipment and building material machinery industry sales fell in 2009 nominally by 43 per cent to 9.5 billion euros. "2009 has been the most difficult year ever for our industry," Dr Christof Kemmann, Chairman of the industry's association, said at a board meeting of the association in Frankfurt which was held recently.
It's the building material machinery's turnover in particular which collapsed in 2009; by 51 per cent to 5.3 billion euros compared to the previous year. This was true for large-scale machines especially and much more than for compact machines; only tunnelling machines were not part of this negative trend at all. With construction equipment the decrease in sales was a little less dramatic - it fell by 18 per cent to 4.2 billion euros. In both industries, the amount of incoming orders also dropped clearly compared to 2008, with construction equipment by 46 per cent, with building material machinery by 58 per cent. Here also, the different parts of the industries were affected in different ways. Earth moving and road construction machinery saw a more stable demand by the end of the year again, whereas manufacturers of concrete technology and building material machinery do not yet see an upward trend.
The construction equipment and building material machinery industry is highly dependent on export and therefore is currently fighting the loss of foreign markets. Throughout 2009, the industry had to do without its markets in Russia and Eastern Europe, the Middle East - a booming market until 2008 - as well as the USA and some European high volume markets such as Spain. Unfortunately, these do not look very promising either for the current year. Foreign sales for the entire industry fell by 46 per cent compared to the previous year - domestic sales remained more stable in comparison and only fell by 33 per cent. For the first time in a number of years, the export quota for the entire industry dropped and now is 66 per cent for construction equipment and 79 per cent for building material machinery.
2010 will be better. After the slump throughout the previous year, the manufacturers of construction machinery are expecting a slight increase in turnover by five per cent. Manufacturers belonging to the building material machinery are assuming to see another decrease by ten per cent in turnover compared to 2009, with different effects on the different areas of the industry. "Even a slight growth will not prevent the industry from reaching a level that will be far below those of previous years", said Kemmann. Today's level has to be compared to that before the boom. "We are not talking of the crisis anymore at this stage, but rather of a 'new and at the same time old' reality." In order to ensure taking steps that are necessary in this current situation, adaptations in capacity may no longer be taboo.
In 2010, the industry puts its hope on its traditional markets in Europe and, in particular, on regions of growth in the Far East, especially China and India. But South America and North Africa have proven to be stimulating as well. "We are convinced that bauma will help also to boost the change in mood", Kemmann believes. The worldwide biggest international trade fair of the industry will take place in Munich from April 19th to 25th, 2010. It takes place every three years and traditionally is an important indicator of trends for the industry.
VDMA
Fachverband Bau- und Baustoffmaschinen
Lyoner Straße 18 I 60528 Frankfurt/Main IGermany
T +49 (0) 69 66 03 12 57 I F +49 (0) 69 66 03 22 57
www.vdma.org
